XRP's 24-Hour Trading Volume Plummets 56% Amid Market Sell-Off
1min read XRP, the fourth-largest cryptocurrency by market capitalization, experienced a significant decline in its 24-hour trading volume, plummeting by 56% to $2.25 billion. This drop occurred amidst a broader crypto market sell-off, which rattled investor sentiment and led to a decrease in overall market capitalization by 1.04% to $2.65 trillion. The majority of crypto assets, including XRP, were in the red, reflecting the market's bearish trend.
XRP's recent rebound to $2.17 was short-lived as selling pressure returned to the market. The cryptocurrency is currently approaching $2, reaching intraday lows of $2.08. This drop follows profit-taking after XRP rebounded for three consecutive days from April 3, reaching highs of $2.17. At the time of writing, XRP had fallen 1.67% in the last 24 hours to $2.09 and was down 4.09% weekly.
The Relative Strength Index (RSI) at 42 indicates an increased risk of a break below $2. If this occurs, XRP might form a bearish head-and-shoulders pattern. XRP eyes support at $1.84, which coincides with the daily Simple Moving Average (SMA) 200. However, if that level is broken, the slide could continue to $1.77 and then $1.27. Buyers face a challenging task to avoid a breakdown. They must quickly drive the price over the 50-day SMA at $2.34 to pave the way for a relief rally to $2.6 and beyond.
The drop in XRP trading volume might reflect growing caution among traders, with many staying on the sidelines amid market uncertainty. The current drop in volume, which may indicate waning interest from short-term traders, raises questions about what might come next for XRP price. As it is, eyes are on the crucial $2 level, which XRP must hold so as not to validate a bearish head and shoulders pattern.
The crypto market faced fresh selling pressure in the early Sunday session as traders took profits from the recent rebound and considered macroeconomic developments in the past week. The overall crypto market capitalization fell 1.04% to $2.65 trillion, with the majority of the crypto assets, including XRP, in red. The decline in XRP's value was particularly notable as it outpaced other major cryptocurrencies, highlighting the specific challenges faced by this digital asset.
Ask Aime: What factors contributed to XRP's significant decline in trading volume, and how might this impact its future price trajectory?
